Pent-up housing demand requires policy responses
New research from business lobby group IBEC shows an unprecedented scale of housing demand in the Irish market.
One-third of the survey respondents would like to buy a home within the next two years, but only about half of those (15%) expect that they will be able to do so.
Over 50% of younger-age cohorts who responded would consider moving to rural areas for housing and quality-of-life factors.
The research has also found strong public support for a range of Government measures to address housing availability and affordability and indicates some significant post-COVID housing preference trends.
Commenting, IBEC’s Fergal O’Brien said: “Housing supply and affordability is clearly one of Ireland’s main societal challenges but it is also a significant constraint for employers and the wider economy from a talent attraction and retention perspective.
“A renewed national effort is required to address the housing issues which are now undermining the quality of life for so many people in Ireland.
He said the research identifies the main challenges to home purchase which include:
- Lack of availability in the right areas,
- Affordability,
- Bank lending constraints.
Supply
There is strong support for additional Government measures to improve the supply of affordable housing, with 56% of survey respondents in favour of the Government’s shared-equity scheme, O’Brien added.
Key findings include:
- 15% plan to buy a home in the next two years but 33% would like to do be able to do so,
- Nearly one-third of renters see mortgage approval as a barrier to purchase,
- 82% believe Government should introduce additional measures to improve the supply of affordable housing,
- 56% are in favour of the shared-equity scheme, with 33% expressing some interest in availing of such a scheme,
- When the ‘don’t knows’ were excluded, three out of four respondents were supportive of the shared equity scheme,
- COVID-19 has resulted in an increased importance placed on a garden/outdoor space (65%),
- Two-thirds agreed that since the pandemic, having extra space to use as a home office has become more important,
- Over 50% of younger age cohort would consider moving to rural areas for housing and quality-of-life factors.
Policy focus
O’Brien called for a sustained policy focus on delivering increased supply of high quality and affordable stock.
In order to ensure sufficient allocation of capital and industry resources to the delivery of new housing stock, the timing of other priorities, such as the retrofitting of existing stock, may need to be adjusted, he added.
“Social dialogue can provide a mechanism through which these potentially competing priorities can be best approached,” concluded Fergal O’Brien.